CUNA is now America's Credit Unions.
A stronger voice to advance the credit union industry.
As fast as pizza delivery
It’s tempting for credit unions to measure themselves against financial services competitors when evaluating convenience and speed of service. But in the age of instant video, music streaming, and Amazon Prime, credit unions need to consider millennials’ expectations.
“You have Amazon, Netflix, and Venmo, where you can send money with the click of a button,” says Jordan van Rijn, CUNA’s senior economist. “So, younger generations are expecting technology to be able to offer those things to them. It puts a lot of pressure on credit unions to provide that technology to make interactions easy and efficient for their members.”
Sometimes, the best option to provide world-class service is to partner with a national provider. That’s what $374 million asset Day Air Credit Union has
done by offering its checking accounts through Kasasa, a CUNA Strategic Services alliance provider that specializes in branded products.
Not only does Kasasa provide fast service, it caters to millennial interests with its rewards and cash-back programs, offering perks such as iTunes and Amazon gift cards, says John Theobald, vice president of lending at the Kettering, Ohio, credit union.
Young adults also expect to be able to communicate with their credit unions on-demand in the format they prefer, whether that’s via chat, in person, or over the phone. And they don’t want to receive mass marketing messages.
Young adults also expect to be able to communicate with their credit unions on-demand in the format they prefer, whether that’s via chat, in person, or over the phone. And they don’t want to receive mass marketing messages.
“We’re making our marketing efforts more tailored for the individual,” says Christel Ventura, assistant vice president of consumer lending at $1.9 billion asset GTE Financial in Tampa, Fla. “If we see they’ve been shopping a lot at Lowe’s, which might mean they’re doing some home improvement, we might send an email to that member and say, ‘You might be interested in a home equity loan.’”
Although young adults borrow less overall than other generations, they’re also the most likely to make impulse purchases, according to “How Millennials Want to Work and Live,” a recent Gallup study.
Because mobile banking gives millennials the ability to essentially carry multiple credit union and bank branches in their pocket at all times, it’s becoming easier for consumers to use multiple financial institutions for different services.
“We know the need will arise when they’ll need to borrow on the spur of the moment,” Downin says. “So being able to capitalize on that with quick and efficient channels is a way credit unions can meet the needs of millennials.”
NEXT: The sharing economy